Sorce v. Naperville Jeep Eagle, Inc.Sorce v. Naperville Jeep Eagle, Inc.
delivered the opinion of the court:
Plаintiffs, Dr. Angelo Sorce and his wife, Jo-Ann, appeal from partial summary judgment entered in favor of defendants, Naperville Jeep Eagle, Inc. (Jeep Eagle), and AM General Corporation (AM General), on the issues of revocation of acceptance, breach of warranty, and products liability. We affirm in part and reverse in part.
I. FACTUAL BACKGROUND
In January 1993, Dr. Sorce purchased a new Hummer sports utility vehicle from Jeep Eagle. Dr. Sorce intended to use the Hummer as his primary source of transportation. The truck was equipped with an electronic tire pressure regulator that allowed the driver to inflate or deflate the tires from inside the vehicle to accommodate the terrain. The purchase price was $66,404.
The truck was manufactured by AM General. AM General provides a written 3-year or 36,000-mile, “bumper-to-bumper” manufacturer’s limited warranty with every new vehicle purchased. The terms of the limited warranty are spelled out in a manual consisting of 19 half-pages. Page nine of the manual sets out what is entitled “LEGAL TERMS,” which includes the following language in all capital letters:
“AM GENERAL DOES NOT GRANT TO ANY PERSON PERMISSION TO CREATE FOR IT ANY LIABILITY OR OBLIGATION ASSOCIATED WITH THIS VEHICLE THAT IS NOT WRITTEN IN THE ‘NEW VEHICLE LIMITED WARRANTY.’ THE LIMITED WARRANTIES IDENTIFIED IN THIS MANUAL ARE THE ONLY WRITTEN WARRANTIES PROVIDED BY AM GENERAL CONCERNING THIS VEHICLE.
ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE APPLICABLE TO THIS VEHICLE IS LIMITED IN DURATION TO THE DURATION OF THIS WRITTEN WARRANTY. PERFORMANCE OF REPAIRS AND NEEDED ADJUSTMENTS IS THE EXCLUSIVE REMEDY UNDER THIS WRITTENWARRANTY OR ANY IMPLIED WARRANTY.
AM GENERAL WILL NOT BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES CAUSED BY FALSIFICATION, MISREPRESENTATION, OR BREACH OF THIS WRITTEN WARRANTY OR ANY IMPLIED WARRANTY.”
Jeep Eagle provided Dr. Sorce with a copy of the warranty manual at the time he purchased the truck.
In August 1993, Dr. Sorce and Jo-Ann were in the truck returning home to Illinois frоm their cottage in Wisconsin. At some point during the trip, the truck began to vibrate severely. According to Jo-Ann, the vibration was so bad that she suffered a back injury that caused her considerable pain. Acting as Jo-Ann’s treating physician, Dr. Sorce opined that Jo-Ann’s injuries were caused by the vibrations. Dr. Sorce never opined that the vibrations were caused by a defect that existed at the time the truck left the factory. Dr. Sorce requested and received a total tire replacement after the incident.
In his deposition, Dr. Sorce testified that the truck experienced problems from day one — “there was always somеthing wrong with it.” The problems included brake pedal vibration, severe tire and vehicle vibration, loss of air pressure in the tires, water leaks around the windows, mold from standing water under the carpeting, hood vibration, which required adjustment, and a persistent lack of heat on the driver’s side. The heat problem required three visits to fix, culminating in the replacement of the “heat box.” Dr. Sorce alleged that after the heat box replacement noxious fumes began emanating from the heat ducts due to the failure by the dealership to clean grease off the truck’s manifold after the repair. The fumes apparently caused numbness and tingling in Dr. Sorce’s extremities and burning in his eyes. Dr. Sorce brought the truck in for repair of the tire and vehicle vibration 18 times between March 1993 and September 1995. Allegedly, the problems never were adequately fixed.
From late in 1993 to the middle of 1994, Dr. Sorce claimed to have told the salesman at Jeep Eagle that he no longer wanted the “lemon” and wished to trade it in on another new Hummer. According to Dr. Sorce, each time he told the salesman this, he received assurances that any problems would be fixed. Jeep Eagle eventually offered Dr. Sorce a $20,000 trade-in allowance on the truck. At the time, the truck had been drivеn approximately 23,000 miles. Dr. Sorce did not think the trade-in offer was a fair deal; he wanted $54,000 for the truck. Nonetheless, he continued to drive the truck because “[he] liked the vehicle to go where it could go, so [he] put up with it for awhile.”
In May 1994, Dr. Sorce attended a Hummer rally in Dayton, Tennessee. At the rally he drove his truck over extremely rough terrain and through as much as 30 inches of water. He did this despite the fact that the truck had 22 warranty service visits since its purchase.
In September 1995, Dr. Sorce brought the Hummer to Jeep Eagle in an attempt to effectuate another warranty repair. By this time the truck had been in for service оver 30 times. Jeep Eagle refused to make the repairs under the warranty because the vehicle had nearly 44,000 miles on it. Through their attorney, plaintiffs sent written notice of revocation of acceptance to Jeep Eagle in October 1995. Jeep Eagle refused the revocation of acceptance.
Plaintiffs brought suit against Jeep Eagle and AM General. Their amended complaint contained four counts. Counts I and II alleged, respectively, breach of express and implied warranties under the Magnuson-Moss Warranty Federal Trade Commission Improvement Act (Magnuson-Moss Act, Magnuson-Moss, or Act) (
Michael Truesdale was retained by plaintiffs as an automobile expert. Truesdale was a high school shop teacher with a master’s degree in educational administration and certifications as a master engine machinist and master automotive technician. He did not have an engineering degree. In college, Truesdale took industrial courses, including welding and materials science. In his deposition, Truesdale testified that he had built or reconditioned several race cars in the past. Truesdale “examined” the Hummer in November 1995. His examination entailed riding in the passenger seat while Dr. Sorce drove around the neighborhood. During the ride Truesdale placed a thermometer near the heating ducts and asked Dr. Sorce numerous questions. Truesdale later submitted a “report” that consisted of “[his] notes from the vehicle inspection [he] performed on [the] Hummer.” The “report” summarized Truesdale’s understanding of Dr. Sorce’s “primary concern” which was “the permanent presence of mildew in the Hummer.” The “report” went on to note that the temperature of the heat coming from the ducts was about 30 degrees lower than normal. The “report” offered no opinions to any degree of certainty as to the condition of the truck when it left AM General’s factory. Nor were such opinions offered by Truesdale during his deposition.
Defendants moved for summary judgment on all counts. On count I (breach of express warranty), the trial court denied summary judgment to both defendants but prohibited recovery for incidental and consequential damages against AM General. On count II (breаch of implied warranty of merchantability), the trial court denied summary judgment to Jeep Eagle and granted it to AM General. On counts III and TV (revocation of acceptance and products liability), the trial court granted summary judgment to both defendants.
Plaintiffs timely appealed. On appeal, plaintiffs contend that summary judgment was improper (1) because the issues of attempted revocation of acceptance and products liability involve disputes over material facts; (2) because, as a matter of law, AM General’s limited warranty improperly excluded incidental and consequential damages fоr breach of warranty; and (3) because, contrary to the trial court’s conclusion, an action for breach of implied warranty of merchantability may be maintained under the Magnuson-Moss Act concurrent with an action for breach of express warranty.
II. DISCUSSION
A. Standard and Scope of Review
Because this case comes to us from an order granting summary judgment, we apply a de novo standard of review. Espinoza v. Elgin, Joliet & Eastern Ry. Co.,
B. Revocation of Acceptance
Plaintiffs first contend that the trial court improperly granted summary judgment “as a matter of law” on the issue of revocation of acceptance because there exists a genuine dispute over material facts. Defendants counter that summary judgment was proper as a matter of law given the undisputed fact that Dr. Sorce attempted revocation of acceptance well after both discovery of the alleged problems and the expiration of the limited warranty period.
In Illinois, sales of goods, including automobiles, are governed by the UCC. Under the UCC, a buyer may reject goods that “fail in any respect to conform to the contract.”
When goods have been accepted, a buyer may revoke acceptance when a nonconformity substantially impairs the value of previously accepted goods to the buyer.
“(a) on the reasonable assumption that its non-conformity would be cured and it has not been seasonably cured; or
(b) without discovery of such non-conformity if his acceptance was reasonably induced either by the difficulty оf discovery before acceptance or by the seller’s assurances.”810 ILCS 5/2 — 608(a) , (b) (West 1994).
In either case, revocation of acceptance must be made within a reasonable time after the buyer discovers or should have discovered the ground for revocation.
A buyer who chooses to revoke acceptance of goods has the same duties as if the buyer had rеjected the goods.
Thus, the issue of the validity of an attempted revocation of acceptance in most instances hinges upon material questions of fact. See Boysen,
C. Exclusion of Incidental and Consequential Damages and Limitation of the Implied Warranty of Merchantability
Plaintiffs next make two related arguments. First, plaintiffs contend that the trial court improperly prohibited recovery for incidental and consequential damages against AM General. The trial court found that AM General’s exclusion of such damages in its written limited warranty met the requirements of the Magnuson-Moss Act because the language was “sufficiently conspicuous.” Therеfore, according to the trial court, the exclusion was valid as against plaintiffs. Plaintiffs contend that the exclusion is invalid because it does not appear “on the face of the warranty” as required by the Magnuson-Moss Act.
Second, plaintiffs contend that the trial court improperly granted summary judgment to AM General on the issue of breach of implied warranty of merchantability. The trial court found that, “as long as the implied warranty of merchantability is limited to the duration of the express warranty,” a party may maintain an action only for breach of express warranty. According to plaintiffs, the trial court’s decision in essence equated the limitation of the implied warranty of merchantability with the disclaimer of it. Plaintiffs maintain that under Magnuson-Moss and the UCC this was improper. We note that plaintiffs do not challenge the validity of the limitation itself.
This is an issue of statutory interpretation. In construing a statute, it is our duty to give effect to and ascertain the intent of the legislature. Zekman v. Direct American Marketers, Inc.,
Magnuson-Moss provides a private right of action by a consumer purchaser of a consumer product against a manufacturer or retailer failing to comply with the Act or the terms of a written warranty or any implied warranty arising therefrom.
In analyzing Magnuson-Moss issues, it must be kept in mind that in the first instance the UCC governs sales of goods, including accompanying warranties. Thus, written warranties provided with consumer goods must be examined in light of the requirements of both the UCC and Magnuson-Moss. Only to the extent that MagnusonMoss is applicable to the sale of consumer goods does it supercede inconsistent provisions of the UCC. Murphy v. Mallard Coach Co.,
Magnuson-Moss requires a supplier who gives a written warranty that covers a “consumer product” costing more than $10 to meet certain minimum disclosure and designation requirements. The product must be sold to a “consumer.”
According to the Act, a “supplier” is any business person who makes a consumer product directly or indirectly available to consumers.
Under Magnuson-Moss a “written warranty” is:
“(A) any written affirmation of fact or written promise made in connection with the sale of a consumer product by a supplier to a buyer which relates to the nature of the material or workmanship and affirms or promises that such material or workmanship is defect free or will meet a specified level of performance over a specified period of time, or
(B) any undertaking in writing in connection with the sale by a supplier of a consumer product to refund, repair, replace, or take other remedial action with respect to such product in the event that such product fails to meet the specifications set forth in the undertaking.”15 U.S.C. §§ 2301(6)(A) , (6)(B) (1994).
See 16 C.F.R § 700.3(a) (1994). This is not the same as an express warranty under the UCC (
Section 103 of the Act requires a warrantor to “clearly and conspicuously” designate a written warranty as either a “full [statement of duration] warranty” or a “limited warranty.”
Section 104 of the Act requires that a “full warranty” (1) must provide for repair within a reasonable time at no charge to the consumer and, if the product or part thereof cannot be repaired after a reasonable number of attempts, the buyer must be given the right to a refund or replacement at no charge (
Nonetheless, the Act specifically prohibits the disclaimer or modification of any implied warranty whether a warranty is designated “full” or “limited.”
To summarize, if a warrantor gives any written warranty (“full” or “limited”), there may be no disclaimer of any implied warranty. If a warrantor gives a “limited warranty,” the duration of any implied warranty may be limited (but not disclaimed) to the duration of the express warranty, but if a “full warranty” is given there may be no such limitation. The exclusion of consequential damages is prohibited only if a “full warranty” is provided, unless the exclusion appears conspicuously on the face of the warranty. See
1. Exclusion of Consequential Damages
Plaintiffs contend that AM General’s “limited warranty” improperly excluded consequential damages because the exclusion did not appear “on the face of the warranty” (see
There simply is no provision in Magnuson-Moss dealing with the exclusion or limitation of consequential damages in “limited warranties,” let alone a requirement that such exclusions or limitations conspicuously appear on the face of the warranty. Because no such provision exists in the Act, the exclusion or limitation of consequential damages in “limited warranties” is by implication governed by the UCC. See Murphy,
The cases cited by plaintiffs (Blankenship v. Northtown Ford, Inc.,
2. Limitation of the Implied Warranty of Merchantability
Summary judgment in favor of AM General on the issue of breach of implied warranty of merchantability is quite a different matter. In granting summary judgment in favor of AM General, the trial court stated:
“Let me explain to you how I view the statutory system. You have here the Magnuson-Moss Act, which as I see it, as long as the implied warranty is limited to the duration of the exprеss warranty, you basically have your action under the express warranty only.”
Plaintiffs contend the trial court in essence read a disclaimer of the implied warranty of merchantability into the limited warranty based upon the language “ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE APPLICABLE TO THIS VEHICLE IS LIMITED IN DURATION TO THE DURATION OF THIS WRITTEN WARRANTY.”
Magnuson-Moss authorizes suits by consumers against manufacturers for breach of both express and implied warranties.
D. Products Liability
Plaintiffs’ final contention is that the trial court improperly granted summary judgment on the issue of strict products liability because a material issue of fact exists as to whether there was a manufacturing or design defect in the Hummer. We disagree.
Illinois has long applied the concept of strict tort liability set out in section 402(A) of the Restatement (Second) of Torts (1965) to products liability cases. See Suvada v. White Motor Co.,
In the typical products liability case, the determination of whether a product contains an unreasonably dangerous defect is a question of fact. Korando,
In Sanchez, summary judgment was granted despite deposition testimony by an expert for the plaintiff. The appellate court affirmed, finding that the expert testimony indicated nothing more than a mere possibility that thе product was defective. The court noted the expert never tested the product, and the plaintiffs used the product for a substantial time before any injury occurred. Sanchez,
Jo-Ann claims that the truck’s defective condition (“wobbly wheels”) causеd injury to her back. Plaintiffs’ automobile expert, Michael Truesdale, rode in the truck, noting that it had a hard ride. Truesdale never conducted any tests or experiments on the wheels. He never testified, issued a report, or gave an opinion to any degree of certainty that identified any defect or stated that such a defect, if present, existed at the time the truck left AM General’s control. Dr. Sorce also testified as an expert on the cause of Jo-Ann’s injury. In his opinion, the truck was the cause of Jo-Ann’s injury. Plaintiffs argue that this simple opinion was sufficient to create a genuine issue of material fact concerning thе truck’s defective condition. “ ‘[A] legal inference of defectiveness may not be drawn merely from evidence that an injury occurred.’ ” Norman v. Ford Motor Co.,
III. CONCLUSION
For the foregoing reasons we affirm summary judgment on plaintiffs’ claim for products liability against both defendants and the trial court’s prohibition on recovery of incidental and consequential damages against AM General; we reverse summary judgment as to plaintiffs’ claim for revocation of acceptance against Jeep Eagle and for breach of implied warranty of merchantability against AM General. We remand this cause for further proceedings.
Affirmed in part and reversed in part; cause remanded.
HUTCHINSON and GALASSO, JJ., concur.